The first-quarter earnings season continues with General Motors (GM), UPS (UPS), RTX (RTX), and Pepsi (PEP) posting results this morning. After the market closes, Tesla (TSLA), Visa (V), Chubb (CB), and Texas Instruments (TXN) will post results.
Enphase (ENPH), which investors may not want to hold, also reports after the bell.
In the consumer goods sector, both GM and Pepsi are attractive companies. GM realized early enough that the EV market was not ready for prime time. Additionally, consumers face severe inflationary pressures and prefer gas-powered or hybrid vehicles.
Pepsi, despite its valuations, has strong profitability and healthy growth. The firm may address Chicago Pepsi drivers voting to strike. Any increase in wages and health care coverage for the 800 employees will add to Pepsi’s costs.
Watch the market’s reaction to Pepsi’s profit margin results this morning.
Credit card firms Visa and Mastercard (MA) are strong long-term holdings. Moreover, patient investors should consider their stocks to hold forever. Newcomers like Block (SQ), cryptocurrency, and PayPal (PYPL) failed to erode their moat.
In the defense sector, RTX will give shareholders an update on its progress in resolving quality issues at Pratt and Whitney. Chances are high that the firm is on track with resolving its engine recall.
